Get Hip to Fees, and Save Your Retirement With ETFs
September 23rd at 1:00am by Tom Lydon
Are you aware of the fees you’re paying when it comes to exchange traded funds (ETFs), mutual funds or your retirement account?
A new study shows: probably not, reports Lisa Shidler for Investment News.
In a survey by AARP, 85% said that while fees are important when it comes time to make decisions about your investments, 74% weren’t aware of how much they’re actually paying.
The Department of Labor is studying the need for fee disclosure, and released a sample form asking for comments. AARP created its own fee disclosure form to be separately tested along with the Labor Department’s.
Only 30% found the Labor Department’s form easy to read, while 77% thought the AARP’s form was easy to understand.
How do fees affect your investments over time? They can have quite a significant impact, as shown by the chart below. On average, ETFs have much lower fees than mutual funds.:
